Taking seriously ill or suffering a major accident can lead to lengthy time off work.
So who pays for the loss of earnings while you recover? Your boss, through sickness benefit? How long does it last? What if you are self-employed?
Permanent health insurance cover can alleviate such worries, paying out an income if an illness or accident prevents you from carrying out your normal occupation.
Premiums vary, depending on what type of job you do, but there are some occupations considered too much of a risk to cover.
There are basically four classes of risk, 1,2,3 and 4, with Class 1 the lowest risk.
Typically, Class 1 occupations comprise clerical, professional and administrative types of jobs, such as accountants or civil servants.
Class 2 occupations include hairdressers, for example, while Class 3, where the risk is considered moderate, might include farmers.
Class 4 is the highest risk. Coal mining would be an example of a high risk occupation.
A couple of points to note; payment of permanent health insurance usually begins after a deferred period (minimum is four weeks, to prevent claims for minor illnesses, such as flu); the maximum level of payment is usually set at around 60% of normal earnings (because you are not actually working).
But occupation is not the only consideration when it comes to the level of premiums paid. Age is a factor, as is current health and past medical history.
